What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-23 compared with 2023-02-24 · 221 added, 267 removed, 658 unchanged (43% of the section changed)

2 unchanged sentences

(Middlemount).

In addition to its mining operations, the Company markets and brokers coal from other coal producers, trades coal and freight-related contracts, and, during 2022, partnered in a joint venture with the intent of developing various sites, including certain reclaimed mining land held by the Company in the U.S., for utility-scale photovoltaic solar generation and battery storage.

In addition to its mining operations, the Company markets and brokers coal from other coal producers;

trades coal and freight-related contracts;

and, since 2022, is partnered in a joint venture with the intent of developing various sites, including certain reclaimed mining land held by the Company in the U.S., for utility-scale photovoltaic solar generation and battery storage.

During 2023, Peabody advanced the redevelopment of its North Goonyella Mine in Australia.

During the fourth quarter, the mine was renamed to Centurion Mine to reflect the next stage of redevelopment and the Company’s agreement to acquire an adjacent coal deposit.

The first development coal from the Centurion Mine is anticipated in the second quarter of 2024.

Segment and Geographic Information

As of December 31, 2023, Peabody reports its results of operations primarily through the following reportable segments:

Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, Other U.S.

Thermal Mining and Corporate and Other.

Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S.

Thermal and Corporate and Other.

Refer to Part II, Item 7.

2 unchanged sentences

Mining Locations

The maps that follow display Peabody’s active mine locations as of December 31, 2022.

The maps that follow display Peabody’s active and development mine locations as of December 31, 2023.

Also shown are the primary ports that the Company uses for its coal exports and the Company’s corporate headquarters in St.

10 unchanged sentences

2023 2022 2021

Seaborne Thermal Mining (Tons in millions)

Seaborne Thermal (Tons in millions)

Wilpinjong New South Wales S D, T/S T R, EV Yes 12.0 12.1 13.2

3 unchanged sentences

New South Wales U LW T, C R, EV Yes 1.2 1.1 1.4

Seaborne Metallurgical Mining

Coppabella (3)

Queensland S DL, D, T/S P R, EV Yes 2.4 2.1 2.2

Seaborne Metallurgical

Metropolitan (3)

New South Wales U LW C, P, T R, EV Yes 2.2 1.8 1.0

Coppabella (4)

Queensland S DL, D, T/S P R, EV Yes 2.2 2.4 2.1

Queensland S D, T/S C, P, T R, EV Yes 2.2 1.5 1.3

1 unchanged sentence

Alabama U LW C B, EV Yes 0.6 0.8 0.1

Millennium (6)

Queensland S HW C, P R, EV No — — 0.1

Middlemount (6)

Queensland S D, T/S C, P R, EV Yes — — —

Powder River Basin Mining

Powder River Basin

North Antelope Rochelle Wyoming S DL, D, T/S T R No 62.0 60.4 62.8

1 unchanged sentence

Rawhide Wyoming S D, T/S T R No 9.8 10.3 11.6

Thermal Mining

Bear Run Indiana S DL, D, T/S T Tr, R, EV Yes 5.5 6.7 6.0

1 unchanged sentence

Gateway North Illinois U CM T Tr, R, R/B, T/B, EV Yes 2.5 2.4 1.8

Wild Boar Indiana S HW, DL, D, T/S T Tr, R, R/B, T/B Yes 2.3 2.4 2.0

Francisco Underground Indiana U CM T R Yes 2.0 1.8 1.5

Wild Boar Indiana S HW, DL, D, T/S T Tr, R, R/B, T/B Yes 1.9 2.3 2.4

Twentymile Colorado U LW T R, Tr, EV Yes 1.3 1.5 1.7

Somerville Central (6)

Indiana S DL, D, T/S T R, R/B, T/B, T/R No — — 0.4

S Surface Mine B Barge

7 unchanged sentences

R Rail P Pulverized Coal Injection

(1) In December 2020, the United Wambo Joint Venture, an unincorporated joint venture between Peabody and Glencore plc, began joint production.

The tons shown reflect Peabody’s proportionate share throughout the years.

(1) Peabody owns a 50% undivided interest in an unincorporated joint venture that owns the Wambo Open-Cut Mine.

The tons shown reflect its share.

The Company’s 50% joint venture interest is subject to an outside non-controlling ownership interest.

(2) Majority-owned mine in which there is an outside non-controlling ownership interest.

(3) The mine restarted production in the second quarter of 2021 after being idled in the fourth quarter of 2020.

(4) Peabody owns a 73.3% undivided interest in an unincorporated joint venture that owns the Coppabella and Moorvale mines.

The tons shown reflect its share.

(4) The mine was idled in the fourth quarter of 2020.

The mine restarted production in the second quarter of 2021.

(5) The mine was idled in the fourth quarter of 2020.

The mine restarted production in November 2021.

(6) The mine ceased production during 2020.

(5) The mine experienced a fire in March 2023 and restarted production in June 2023.

In November 2021 the mine restarted production after being idled in the fourth quarter of 2020.

(6) Peabody owns a 50% equity interest in Middlemount, which owns the Middlemount Mine.

10 unchanged sentences

Those five customers were supplied primarily from 13 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2024 to 2025.

Peabody’s largest customer in 2022 contributed revenue of approximately $358 million, or approximately 7% of Peabody’s total revenue from coal supply agreements, and has contracts expiring at various times from 2023 to 2024.

Peabody’s largest customer in 2023 contributed revenue of approximately $341 million, or approximately 7% of Peabody’s total revenue from coal supply agreements, and has contracts expiring in 2024.

Peabody’s sales backlog, which includes coal supply agreements subject to price reopener and/or extension provisions, was approximately 221 million and 314 million tons of coal as of January 1, 2024 and 2023, respectively.

Contracts in backlog have remaining terms ranging from one to ten years and represent approximately three years of production based on the Company’s 2022 production volume of 122.9 million tons.

Contracts in backlog have remaining terms ranging from one to eight years and represent approximately two years of production based on the Company’s 2023 production volume of 126.7 million tons.

Approximately 51% of its backlog is expected to be filled beyond 2024.

Seaborne Mining Operations.

Revenue from Peabody’s Seaborne Thermal Mining and Seaborne Metallurgical Mining segments represented approximately 59%, 50% and 42% of the Company’s total revenue from coal supply agreements for the years ended December 31, 2022, 2021 and 2020, respectively, during which periods the coal mining activities of those segments contributed respective amounts of 18%, 18% and 19% of the Company’s sales volumes from mining operations.

Seaborne Operations.

Revenue from Peabody’s Seaborne Thermal and Seaborne Metallurgical segments represented approximately 56%, 59% and 50% of the Company’s total revenue from coal supply agreements for the years ended December 31, 2023, 2022 and 2021, respectively, during which all three periods the coal mining activities of those segments contributed approximately 18% of the Company’s sales volumes from mining operations.

Production from these segments is primarily sold into the seaborne thermal and metallurgical markets, with a majority of those sales executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.

Industry commercial practice, and Peabody’s typical practice, is to negotiate pricing for seaborne thermal coal contracts on an annual, spot or index basis and seaborne metallurgical coal contracts on a quarterly, spot or index basis.

For its seaborne mining operations, the portion of sales volume under contracts with a duration of less than one year represented 41% in 2022.

Thermal Mining Operations.

Revenue from Peabody’s Powder River Basin Mining and Other U.S.

Thermal Mining segments, in aggregate, represented approximately 41%, 50% and 58% of the Company’s revenue from coal supply agreements for the years ended December 31, 2022, 2021 and 2020, respectively, during which periods the coal mining activities of those segments contributed respective aggregate amounts of approximately 82%, 82% and 81% of the Company’s sales volumes from mining operations.

For its seaborne operations, the portion of sales volume under contracts with a duration of less than one year represented 30% in 2023.

Thermal Operations.

Revenue from Peabody’s Powder River Basin and Other U.S.

Thermal segments, in aggregate, represented approximately 44%, 41% and 50% of the Company’s revenue from coal supply agreements for the years ended December 31, 2023, 2022 and 2021, respectively, during which all three periods the coal mining activities of those segments contributed approximately 82% of the Company’s sales volumes from mining operations.

The Company expects to continue selling a significant portion of coal production from its U.S.

19 unchanged sentences

and Australian rail carriers and port and barge companies due, in part, to its modern coal-loading facilities and the experience of its transportation coordinators.

During the year ended December 31, 2022, rail service constraints due, in part, to labor shortages and weather conditions experienced by Peabody’s rail service providers, have negatively impacted U.S.

Beginning in 2022, rail service constraints due, in part, to labor shortages and weather conditions experienced by Peabody’s rail service providers, negatively impacted U.S.

thermal shipment volumes.

The constraints began to lessen in 2023, resulting in improved rail performance compared to the prior year.

Refer to the table in the foregoing “Mining Locations” section for a summary of transportation methods by mine.

7 unchanged sentences

Peabody’s U.S.

thermal mining operations exported less than 1% of their annual tons sold during both the years ended December 31, 2022 and 2021.

thermal operations exported less than 1% of their annual tons sold during the years ended December 31, 2022 and 2021.

No tons were exported during the year ended December 31, 2023.

The primary ports used for U.S.

thermal exports are the United Bulk Terminal near New Orleans, Louisiana, the St.

James Stevedoring Anchorages terminal in Convent, Louisiana and the Kinder Morgan terminal near Houston, Texas.

The primary port used for U.S.

thermal exports is the Kinder Morgan Terminal near Houston, Texas.

Mining Supplies and Equipment.

3 unchanged sentences

Supplier concentration related to the Company’s mining equipment also allows it to benefit from fleet standardization, which in turn improves asset utilization by facilitating the development of common maintenance practices across its global platform, enhancing its flexibility to move equipment between mines and reduce working capital through inventory optimization.

Surface and underground mining equipment demand and lead times for parts and components have increased in recent periods.

Surface and underground mining equipment demand and lead times for parts and components stabilized throughout 2023.

Peabody consistently uses its global leverage with major suppliers and comprehensive planning processes to ensure security of supply to meet the requirements of its active mines.

1 unchanged sentence

Peabody does not believe that it has undue operational or financial risk associated with its dependence on any individual service providers.

Throughout 2022, inflationary pressures and supply chain constraints have contributed to rising costs for mining equipment, supplies and services.

This trend may continue to impact future periods.

Throughout 2022 and 2023, inflationary pressures and supply chain constraints contributed to rising costs for mining equipment, supplies and services.

While supply chain constraints eased and inflation somewhat moderated in 2023, future periods could continue to be impacted.

Demand for coal and the prices that the Company will be able to obtain for its coal are highly competitive and influenced by factors beyond the Company’s control, including but not limited to global economic conditions;

15 unchanged sentences

In the U.S., natural gas is highly competitive (along with other alternative fuel sources) with thermal coal for electricity generation.

The competitiveness of natural gas has been strengthened by accelerated growth in domestic natural gas production and new natural gas combined cycle generation capacity.

The competitiveness of natural gas has been strengthened by continued growth in domestic natural gas production and new natural gas combined cycle generation capacity.

The Henry Hub Natural Gas Prompt Price averaged $2.66 per mmBtu in 2023, versus $6.54 and $3.72 per mmBtu in 2022 and 2021, respectively.

3 unchanged sentences

coal power capacity was retired, and since 2010, U.S.

coal power capacity has fallen by approximately thirty-six percent.

coal power capacity has fallen by approximately forty-one percent.

Internationally, thermal coal also competes with alternative forms of electricity generation.

2 unchanged sentences

In addition, seaborne thermal coal import demand can be significantly impacted by the availability of domestic coal production, particularly in the two leading coal import countries, China and India, among others.

China’s unofficial ban on Australian coal in recent years continued until January 2023 and impeded traditional trade flows.

Global thermal coal markets have been turbulent during 2022, due in part to the Russian-Ukrainian conflict and the subsequent ban of Russian coal by European countries.

China’s unofficial ban on Australian coal concluded in January 2023, enabling the reestablishment of some traditional trade flows.

Global thermal coal markets were turbulent during 2022 and 2023, due in part to the Russian-Ukrainian conflict and the subsequent ban of Russian coal by European countries.

In addition to its alternative fuel source competitors, Peabody’s principal U.S.

8 unchanged sentences

Major international direct coal supply competitors (listed alphabetically) include Adaro Energy;

Anglo American plc;

Bumi Resources;

11 unchanged sentences

Seaborne metallurgical coal import demand can be significantly impacted by the availability of domestic coal production, particularly in leading metallurgical coal import countries such as China, among others, and the competitiveness of seaborne metallurgical coal supply from leading metallurgical coal exporting countries of Australia, the U.S., Russia, Canada, Mongolia and Mozambique, among others.

Trade flow disruptions have occurred during 2022 related to China’s unofficial ban on Australian coal and sanctions imposed on Russian coal imports.

Trade flow disruptions occurred during 2022 and 2023 related to China’s unofficial ban on Australian coal and sanctions imposed on Russian coal imports.

Major international direct competitors (listed alphabetically) include Anglo American;

4 unchanged sentences

and Yancoal Australia Ltd, among others.

Peabody Energy Corporation 2022 Form 10-K

Cybersecurity Risk Management

Peabody uses digital technology to conduct its business operations and engage with its customers, vendors and partners.

As the Company implements newer technologies such as cloud, analytics, automation and “internet of things,” the threats to its business operations from cyber intrusions, denial of service attacks, manipulation and other cyber misconduct affecting both the Company and its partners’ technologies increase.

To address the risk, the Company continues to evolve its risk management approach in an effort to continually assess and improve its cybersecurity risk detection, deterrence and recovery capabilities, under oversight from Peabody’s Board of Directors.

Peabody’s cybersecurity strategy emphasizes reduction of cyber risk exposure and continuous improvement of its cyber defense and resilience capabilities.

These include:

(i) proactive management of cyber risk to ensure compliance with contractual, legal and regulatory requirements, (ii) performing due diligence on third parties to ensure they have sound cybersecurity practices in place, (iii) ensuring essential business services remain available during a business disruption, (iv) implementing data policies and standards to protect sensitive company information and (v) exercising cyber incident response plans and risk mitigation strategies to address potential incidents should they occur.

Human Capital

7 unchanged sentences

Louis or its business offices in Brisbane and Beijing.

Peabody Energy Corporation 2023 Form 10-K

Peabody strives to create a strong, united workforce with a commitment to safety as a way of life.

8 unchanged sentences

Peabody actively seeks employees' feedback, including through surveys and focus groups on its employee value proposition.

The typical Peabody employee has approximately seven years of experience with the company, and more than 47% of all Peabody employees remain employed with the company for more than five years.

The typical Peabody employee has approximately seven years of experience with the company, and approximately 47% of all Peabody employees remain employed with the company for more than five years.

The Company offers a variety of learning events, including mentoring and development programs to aid its employees in their career growth.

During the past five years, approximately 27% of open positions and 64% of director and above positions have been filled by internal candidates through promotions and lateral career development opportunities.

During the past five years, approximately 25% of open positions and 60% of director and above positions have been filled by internal candidates through promotions or lateral career development opportunities.

Information About Our Executive Officers

Set forth below are the names, ages and positions of Peabody’s executive officers.

Executive officers are appointed by, and hold office at the discretion of, Peabody’s Board of Directors, subject to the terms of any employment agreements.

Executive officers are appointed by, and hold office at the discretion of, Peabody’s Board of Directors (the Board), subject to the terms of any employment agreements.

Grech 62 President and Chief Executive Officer

5 unchanged sentences

Forkin III 65 Chief Development Officer

Malcolm Roberts 50 Chief Marketing Officer

(1) As of February 16, 2024.

Peabody Energy Corporation 2022 Form 10-K

Grech was named Peabody’s President and Chief Executive Officer in June 2021.

12 unchanged sentences

He also previously held multiple financial positions at Newmont Mining Corporation, a leading gold and copper producer, First Data Corporation, a financial services company, and Deloitte LLP, an international accounting, tax and advisory firm.

Spurbeck is a Certified Public Accountant and holds a Bachelor’s Degree in Accounting from Hillsdale College.

Spurbeck is a Certified Public Accountant (inactive) and holds a Bachelor’s Degree in Accounting from Hillsdale College.

Peabody Energy Corporation 2023 Form 10-K

Yeates was named Peabody’s Executive Vice President and Chief Operating Officer in October 2020.

He has executive responsibility for operations, sales and marketing and technical services.

He has executive responsibility for global operations including health, safety and environment, mine operations, technical, procurement, and sales and marketing.

Yeates has over 40 years of mining industry experience.

23 unchanged sentences

Prior to joining Drummond LTD, Mr.

Hathhorn held various engineering and supervisory positions with Newmont Gold Corporation.

Hathhorn held various engineering and supervisory positions with Newmont Mining Corporation.

Hathhorn holds a Bachelor of Science Degree in Mining Engineering from the University of Idaho, College of Mines.

Peabody Energy Corporation 2022 Form 10-K

Jamie Frankcombe was named Peabody’s President - Australian Operations in November 2021.

10 unchanged sentences

Forkin III was named Chief Development Officer in July 2022 after serving as Senior Vice President - Corporate Development and Strategy since November 2017.

He leads global strategy, mergers and acquisitions, portfolio management, U.S.

thermal coal sales and renewable energy development.

He leads global strategy, mergers and acquisitions, portfolio management and renewable energy development.

Forkin joined Peabody in 2010 and has served in a variety of roles.

5 unchanged sentences

Forkin holds a Bachelor of Science degree in Accountancy from the University of Illinois at Urbana-Champaign and is a Certified Public Accountant (inactive).

Peabody Energy Corporation 2023 Form 10-K

Malcolm Roberts was named Chief Marketing Officer in May 2023.

He has responsibility for all Peabody sales, marketing and logistics.

Roberts joined Peabody in 2021 as Executive General Manager - Sales & Marketing.

He has more than 25 years of experience in the resources and commodities industry, focused on the energy and steel sector, with roles encompassing key aspects of the value chain including finance, commercial, trading and sales and marketing.

During the period of October 2018 to June 2020, Mr.

Roberts was a senior trading lead within the trading division of Heidelberg Cement, a company with global operations in the cement and concrete industry.

His responsibilities included leading a team of traders focused on the trading of solid fuel and other cementitious products.

Prior to that, Mr.

Roberts spent thirteen years in sales and marketing roles with Rio Tinto primarily within their Energy Product Group, including eleven years in leadership roles covering Rio Tinto’s global coal sales, marketing, trading, logistics and analytics functions, encompassing both metallurgical and thermal coal.

Prior to this, Mr.

Roberts worked within sales and marketing and finance roles in both mining and manufacturing industries.

Roberts holds an undergraduate degree in Commerce and Management from Lincoln University in New Zealand and is a CA member of Chartered Accountants Australia and New Zealand.

Regulatory Matters — U.S.

19 unchanged sentences

Coal mine operators must also make payments to a trust fund for the payment of benefits and medical expenses to claimants who last worked in the coal industry prior to July 1, 1973.

Historically, very few of the miners who sought federal black lung benefits were awarded these benefits;

however, the approval rate has increased following implementation of black lung provisions contained in the Affordable Care Act.

The Affordable Care Act included significant changes to the federal black lung program including an automatic survivor benefit paid upon the death of a miner with an awarded black lung claim and establishes a rebuttable presumption with regard to pneumoconiosis among miners with 15 or more years of coal mine employment that are totally disabled by a respiratory condition.

Peabody Energy Corporation 2022 Form 10-K

The federal black lung program also includes automatic survivor benefits paid upon the death of a miner with an awarded black lung claim and a rebuttable presumption with regard to pneumoconiosis among miners with 15 or more years of coal mine employment that are totally disabled by a respiratory condition.

The trust fund has been funded by an excise tax on U.S.

3 unchanged sentences

Peabody recognized expense related to the tax of $57.4 million, $32.4 million and $51.5 million for the years ended December 31, 2023, 2022 and 2021, respectively.

During the year ended December 31, 2022, Peabody recognized additional expense of approximately $8 million as a result of the higher excise tax rates.

Peabody Energy Corporation 2023 Form 10-K

Black Lung Benefits Act Self-Insurance Requirements .

2 unchanged sentences

As part of its ongoing efforts to reform the self-insurance program to ensure that operators are adequately securing their liabilities, the OWCP proposed a rule in January 2023 to update its regulations for authorizing operators to self-insure and for determining appropriate security amounts.

The public comment period for the proposed rule ends March 20, 2023.

The public comment period for the proposed rule ended April 19, 2023.

A change in requirements for security posted to self-insure black lung liabilities could result in the Company being required to post additional security for its obligations.

At the request of OWCP, the Company recently refiled its application for self-insurance.

Environmental Laws and Regulations

4 unchanged sentences

In the U.S., the Surface Mining Control and Reclamation Act of 1977 (SMCRA), which is administered by the Office of Surface Mining Reclamation and Enforcement (OSMRE), established mining, environmental protection and reclamation standards for surface mining and underground mining.

Mine operators must obtain SMCRA permits and permit renewals for mining operations from the OSMRE or from the respective state regulatory authority.

Mine operators must obtain SMCRA permits and permit renewals for mining operations from OSMRE or from the respective state regulatory authority.

Where state regulatory agencies have adopted federal mining programs under SMCRA, the state becomes the primary regulatory authority, with oversight from OSMRE.

States in which Peabody has active mining operations have achieved primacy control of enforcement through federal authorization.

In Arizona, where Peabody performs reclamation work on tribal lands, the Company is regulated by the OSMRE because the tribes do not have SMCRA authorization.

In Arizona, where Peabody performs reclamation work on tribal lands, the Company is regulated by OSMRE because the tribes do not have SMCRA authorization.

SMCRA provides for three categories of bonds:

12 unchanged sentences

The bond amount, in contrast with the asset retirement obligation, presumes reclamation begins immediately, as well as different assumptions related to the cost of equipment and services utilized in the reclamation process.

Peabody Energy Corporation 2022 Form 10-K

After a permit application is prepared and submitted to the regulatory agency, it goes through a completeness and technical review.

7 unchanged sentences

Federal coal leases also require an approved federal mining permit under the signature of the Assistant Secretary of the Department of the Interior.

Peabody Energy Corporation 2023 Form 10-K

The SMCRA Abandoned Mine Land Fund requires a fee on all coal produced in the U.S.

9 unchanged sentences

The CAA requires the United States Environmental Protection Agency (EPA) to review national ambient air quality standards every five years to determine whether revision to current standards are appropriate.

As part of this recurring review process, the EPA in 2020 proposed to retain the ozone NAAQS promulgated in 2015, including both the primary (public health) and secondary (public welfare) standards.

The EPA subsequently promulgated final standards to this effect.

In 2021, fifteen states and other petitioners filed a petition for review of the rule in the United States Court of Appeals for the D.C.

Circuit (D.C.

The litigation is currently in abeyance following a motion filed by the EPA to allow for review of the standards.

The EPA also proposed in 2020 to retain the particulate matter (PM) NAAQS last revised in 2012.

On December 18, 2020, the EPA issued a final rule to retain both the primary annual and 24-hour PM standards for fine particulate matter (PM 2.5 ) and the primary 24-hour standard for coarse particulate matter (PM 10 ) and secondary PM 10 standards.

This rule has also been challenged in the D.C.

Circuit by several states and environmental organizations.

The case is currently in abeyance following a motion filed by the EPA to allow for review of the standards.

On January 6, 2023, the EPA proposed to lower the level of the annual PM 2.5 NAAQS from 12.0 ug /m 3 to within the range of 9.0 to 10.0 ug /m 3 .

More stringent PM or ozone standards would require new state implementation plans to be developed and filed with the EPA and may trigger additional control technology for mining equipment or result in additional challenges to permitting and expansion efforts.

This could also be the case with respect to other NAAQS for nitrogen dioxide (NO 2 ) and sulfur dioxide (SO 2 ), although these standards are not subject to a statutorily-required review until 2023 for NO 2 and 2024 for SO 2.

Final New Source Performance Standards (NSPS) for Fossil Fuel-Fired Electricity Utility Generating Units (EGUs) .

On January 6, 2023, the EPA proposed to lower the level of the primary standard for particulate matter (PM).

If enacted as proposed, this rule could require fossil fuel electric generating units (EGUs) and non-EGUs to install additional emission control technologies, thereby increasing the cost of utilizing fossil fuels for electric generation and industrial uses.

The EPA is also in the process of reviewing the current ozone NAAQS.

The level of the ozone NAAQS can affect requirements to install new or improved emission control technologies at fossil fuel-fired EGUs and non-EGU industrial sources.

Final New Source Performance Standards (NSPS) for Fossil Fuel-Fired EGUs .

The EPA promulgated a final rule to limit carbon dioxide (CO 2 ) from new, modified and reconstructed fossil fuel-fired EGUs under Section 111(b) of the CAA on August 3, 2015, and published it in the Federal Register on October 23, 2015.

This rule requires that newly-constructed fossil fuel-fired steam generating units achieve an emission standard for carbon dioxide of 1,400 lb carbon dioxide per megawatt-hour gross output (CO 2 /MWh-gross).

The standard (known as the Best System of Emission Reduction (BSER)) is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture, utilization and storage (CCUS).

The rule requires that newly-constructed fossil fuel-fired steam generating units achieve an emission standard for CO 2 (known as the Best System of Emission Reduction (BSER)) which is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture, utilization and storage (CCUS).

Modified and reconstructed fossil fuel-fired steam generating units must implement the most efficient generation achievable through a combination of best operating practices and equipment upgrades, to meet an emission standard consistent with best historical performance.

Reconstructed units must implement the most efficient generating technology based on the size of the unit (supercritical steam conditions for larger units, to meet a standard of 1,800 lb CO 2 /MWh-gross, and subcritical conditions for smaller units to meet a standard of 2,000 lb CO 2 /MWh-gross).

Peabody Energy Corporation 2022 Form 10-K

Numerous legal challenges to the final rule were filed in the D.C.

Reconstructed EGUs must implement the most efficient generating technology based on the size of the unit.

Numerous legal challenges to the final rule were filed in the United States Court of Appeals for the D.C.

Circuit (D.C.

Sixteen separate petitions for review were filed, and the challengers include 25 states, utilities, mining companies (including Peabody), labor unions, trade organizations and other groups.

3 unchanged sentences

Notice of final action denying petitions for reconsideration.” Pursuant to an order of the court, these cases remain in abeyance, subject to requirements for the EPA to file 90-day status reports.

On December 20, 2018, the EPA proposed to revise the 2015 NSPS to modify the minimum requirements for newly constructed coal-fired units from partial carbon capture and storage to efficiency-based standards.

On December 20, 2018, the EPA proposed to revise the 2015 NSPS to modify the minimum requirements for newly constructed coal-fired units from partial CCUS to efficiency-based standards.

In contrast to the 2015 rule, the proposed rule defined BSER as the most efficient demonstrated steam cycle in combination with the best operating practices.

The EPA indicated that the primary reason for revising BSER was the high cost and limited geographic availability of carbon capture and storage technology.

The EPA indicated that the primary reason for revising BSER was the high cost and limited geographic availability of CCUS technology.

Status reports filed with the D.C.

1 unchanged sentence

EPA indicate that litigation on the 2015 rule should remain in abeyance pending the EPA’s action on the 2018 proposed rule.

EPA Regulation of Greenhouse Gas Emissions from Existing Fossil Fuel-Fired EGUs .

On October 23, 2015, the EPA published a final rule in the Federal Register regulating greenhouse gas emissions from existing fossil fuel-fired EGUs under Section 111(d) of the CAA (80 Fed.

The rule (known as the Clean Power Plan or CPP) established emission guidelines for states to follow in developing plans to reduce greenhouse gas (GHG) emissions from existing fossil fuel-fired EGUs.

The CPP required that the states individually or collectively create systems that would reduce carbon emissions from any EGU located within their borders by 28% in 2025 and 32% in 2030 (compared with a 2005 baseline).

The EPA subsequently proposed to repeal the CPP and in August 2018 issued a proposed rule to replace the CPP, with the Affordable Clean Energy (ACE) Rule.

In June 2019, the EPA issued a combined package that finalized the CPP repeal rule as well as the replacement rule, ACE.

The ACE rule sets emissions guidelines for GHG emissions from existing EGUs based on a determination that efficiency heat rate improvements constitute the BSER.

Numerous petitions for review challenging the ACE Rule were filed in the D.C.

Circuit and subsequently consolidated.

In January 2021, a 3-judge panel of the D.C.

Circuit vacated and remanded the ACE Rule to the EPA, including its repeal of the CPP and amendments to the implementing regulations that extended the compliance timeline.

On October 29, 2021, the Supreme Court of the United States (Supreme Court) granted certiorari in four consolidated matters seeking review of the D.C.

Circuit’s opinion vacating the ACE rule and invalidating the repeal of the CPP.

On June 30, 2022, the Supreme Court issued its opinion in West Virginia v.

The Supreme Court ruled that the EPA does not have Congressional authority under Section 111(d) of the CAA to limit emissions at existing power plants through generation shifting to other fuels and/or renewable energy, but still can regulate emissions at plants by emissions reductions technologies as the EPA has done in the past.

Circuit’s opinion was reversed and remanded, leaving neither the CPP or the ACE Rule in effect.

Thus, it will be necessary for the EPA to initiate new rulemaking in order to control GHG emissions from EGUs using section 111(d) of the CAA.

The EPA tentatively plans to propose emission guidelines for EGUs in 2023.

The Company will continue to monitor EPA rulemaking in this regard.

EPA’s Greenhouse Gas Permitting Regulations for Major Emission Sources .

In May 2010, the EPA published final rules requiring permitting and control technology requirements for greenhouse gases under the Prevention of Significant Deterioration (PSD) and Title V permitting programs that apply to stationary sources of air pollution.

The EPA determined that these requirements were “triggered” by the EPA’s prior regulation of greenhouse gases from motor vehicles.

These rules were subsequently upheld by the D.C.

Circuit on June 26, 2012.

On June 23, 2014, however, the Supreme Court ruled that the EPA could not require PSD and Title V permitting for greenhouse gases emitted from stationary sources if those sources were not otherwise considered to be “major sources” of conventional pollutants for purposes of PSD and Title V (known as Step 2 sources).

In accordance with that decision, the D.C.

Circuit vacated the federal regulations that implemented Step 2 of the Greenhouse Gas Tailoring Rule in 2015.

Subsequently, the EPA removed the vacated elements from its rules to ensure that neither the PSD nor Title V rules require a source to obtain a permit solely because the source emits or has the potential to emit greenhouse gases above the applicable thresholds.

The EPA therefore no longer has the authority to conduct PSD permitting for Step 2 sources, nor can the EPA approve provisions submitted by a state for inclusion in its state implementation plan providing this authority.

Cross State Air Pollution Rule (CSAPR) and CSAPR Update Rule .

In 2011, the EPA finalized the CSAPR, which requires the District of Columbia and 27 states from Texas eastward (not including the New England states or Delaware) to reduce power plant emissions that cross state lines and significantly contribute to ozone and/or fine particle pollution in other states.

In 2016, the EPA published the final CSAPR Update Rule which imposed additional reductions in nitrogen oxides (NO x ) beginning in 2017 in 22 states subject to CSAPR.

This rule was subsequently remanded back to the EPA.

EPA , 938 F.3d 303.

EPA Regulation of Greenhouse Gas Emissions from New and Existing Fossil Fuel-Fired EGUs .

On May 23, 2023, the EPA proposed a rule that includes five separate actions regarding the control of greenhouse gas (GHG) emissions from fossil fuel-fired power plants.

The EPA proposed to revise NSPS to address CO 2 emissions from both new fossil fuel-fired steam generating units and new fossil fuel-fired stationary combustion turbines.

The EPA also proposed emission guidelines for existing coal- and oil/gas-fired steam generating units and for existing stationary combustion turbines.

Finally, in the same proposed rule, the EPA proposed to repeal the Affordable Clean Energy Rule, promulgated by the EPA in 2019 and vacated by the D.C.

Circuit in 2021.

Peabody Energy Corporation 2023 Form 10-K

In April 2021, the EPA published a final rule in the Federal Register to address the D.C.

Circuit remand.

This rule imposed further reductions of NO x emissions in 12 states that were subject to the original 2016 rule, which was based on the 2008 ozone NAAQS.

In the same rule, the EPA determined that 9 states did not significantly contribute to downwind nonattainment and/or maintenance issues and therefore did not require additional emission reductions.

The EPA subsequently issued Federal Implementation Plans (FIPs) to lower state ozone season NO x budgets in 2021 to 2024 in the affected states.

A petition for review challenging the 2021 rule was filed in the D.C.

Briefing is completed and oral arguments were held September 28, 2022, but this does not stay the effectiveness of the rule.

On April 6, 2022, the EPA proposed FIPs to address regional ozone transport for the 2015 ozone NAAQS.

The proposed rule would result in new ozone season emission budgets for NO x in 25 states, including four Western states, and additionally contains provisions that would require daily “backstop” emission limits for coal-fired power plants over 100 megawatts.

The proposed rule would also set first-time limits on certain industrial sources.

The EPA estimates that by 2026 the compliance cost will be $1.1 billion.

If finalized in the form proposed, the regulations would require existing fossil fuel-fired steam generating units (primarily coal units) to use CCUS with 90% capture of CO 2 if they plan to operate after December 31, 2039.

These units, however, may also pursue a different compliance pathway that is based on making a commitment to cease operations.

The proposed rule also would require existing stationary combustion turbines over 300 megawatts with a capacity factor greater than 50% (primarily units using natural gas) to either utilize CCUS by 2035 or pursue a pathway that would require co-firing with 30% low-GHG hydrogen by 2032, followed by co-firing with 96% low-GHG hydrogen by 2038.

The EPA is also taking comments with regard to imposing standards for stationary combustion turbines under 300 megawatts.

All requirements related to existing affected units – whether fired by coal, oil or natural gas – will be imposed through state plans that can additionally take into account the remaining useful life of a generating unit when determining appropriate controls.

The EPA, however, proposes that such plans generally be no less stringent than the emission reductions that would be obtained under the EPA’s guidelines.

Under the proposed rule, existing steam generating units would need to comply with the standards by January 1, 2030 and existing stationary combustion turbines would be required to comply by either January 1, 2032 or January 1, 2035, depending on what option for compliance is chosen.

Finally, as part of the proposed rule, any newly constructed steam electric generating unit or newly constructed stationary combustion turbine would be subject to GHG standards as of May 23, 2023, the date of the proposed rule.

In addition, as proposed, any new fossil-fuel steam generating unit will need to comply with partial CCUS upon startup as well as a requirement for 90% CO 2 reduction through CCUS by 2040.

Any new or reconstructed stationary combustion turbine will be subject to different standards based on whether it is considered low load, intermediate load or a base load unit.

If finalized as proposed, the GHG NSPS could have substantial impacts on the use of coal, oil and natural gas for the generation of electricity.

EPA’s Permitting Regulations for Major Emission Sources .

Coal-fired and other fossil-fuel fired power plants (as well as industrial facilities) may also be subject to emission limits contained in required CAA permits.

These limits may be imposed through the Prevention of Significant Deterioration (PSD) program for newly constructed facilities that are considered to be major sources, as well as for existing facilities that undergo major modifications.

The CAA also requires such facilities to obtain a title V operating permit.

In general, most permits are issued by state environmental agencies that either implement EPA permitting programs or have an EPA-approved state program.

Cross State Air Pollution Rule (CSAPR) and CSAPR Update Rule .

The CSAPR and related updates require numerous U.S.

states and the District of Columbia to reduce power plant emissions that cross state lines and significantly contribute to ozone and/or fine PM pollution in other states.

On March 15, 2023, the EPA issued a final rule to address regional ozone transport by imposing new federal ozone season emission budgets for nitrogen oxide (NO x ) in 23 states, including California, Nevada, Oklahoma and Texas, as well as some Indian reservations.

The rule includes state emission budgets for NO x affecting fossil fuel-fired power plants and a “backstop daily emissions rate” for large coal-fired power plants if they exceed specified limits.

The rule also sets first-time limits on certain industrial sources that will apply starting with the 2026 ozone season in 20 states.

The EPA estimates that annual compliance costs (for 2023 through 2042) will be $770 million to $910 million.

These emission limitations would apply in addition to requirements contained in state implementation plans to control ozone precursors in affected states, although states have the option to replace these limits with equally strict or more stringent limitations.

When implemented, this rule could influence the closure of some coal generating units that have not installed selective catalytic reduction technologies.

The rule has been challenged in several U.S.

Courts of Appeal, including the D.C.

On December 20, 2023, the U.S.

Supreme Court issued an order for oral argument regarding applications for a stay of the rule.

Mercury and Air Toxic Standards (MATS) .

The EPA published the final MATS rule in the Federal Register in 2012.

The MATS rule revised the NSPS for NO x , SO 2 and PM for new and modified coal-fueled electricity generating plants, and imposed maximum achievable control technology (MACT) emission limits on hazardous air pollutants (HAPs) from new and existing coal-fueled and oil-fueled electric generating plants.

In 2012, the EPA published the final MATS rule, which revised the NSPS for NO x , sulfur dioxide and PM for new and modified coal-fueled electricity generating plants, and imposed maximum achievable control technology (MACT) emission limits on hazardous air pollutants (HAPs) from new and existing coal-fueled and oil-fueled electric generating plants.

MACT standards limit emissions of mercury, acid gas HAPs, non-mercury HAP metals and organic HAPs.

In 2020, the EPA issued a final rule reversing a prior finding and determined that it is not “appropriate and necessary” under the CAA to regulate HAP emissions from coal- and oil-fired power plants.

This rule also finalized residual risk and technology review standards for the coal- and oil-fired electricity utility generating units source category.

Both actions were challenged in the D.C.

Circuit but this litigation was placed in abeyance.

On February 9, 2022 the EPA proposed a rule to revoke the 2020 finding and to reaffirm the agency’s 2016 finding that it remains “appropriate and necessary” to regulate HAP emissions from coal- and oil-fired power plants under Section 112 of the CAA.

In the same proposal, the EPA solicited comments on the performance and cost of new or improved technologies to control HAPs from these power plants as part of the agency’s review of related residual risk and technology review standards.

On March 6, 2023, the EPA issued a final rule which reaffirmed its determination to regulate coal- and oil-fired EGUs under CAA section 112, including the regulation of HAPs from EGUs after considering cost.

On April 24, 2023, the EPA proposed to amend the 2012 MATS rule and require an additional two-thirds reduction in the filterable PM emission of non-mercury HAP metals from existing coal-fired power plants and to reduce the mercury standard for lignite plants by 70%.

The EPA is also proposing to require the use of continuous emissions monitoring systems, and to revise other requirements such as those applicable to the startup of generating units.

Under the proposed rule, the EPA estimated that approximately 500 megawatts of coal-fired capacity would retire by 2028.

The public comment period on the proposals ended on June 23, 2023.

Peabody Energy Corporation 2023 Form 10-K

Regional Haze.

The Clean Air Act contains a national visibility goal for the “prevention of any future, and the remedying of any existing, impairment of visibility in Class I areas which impairment results from manmade air pollution.” The EPA promulgated comprehensive regulations in 1999 requiring all states to submit plans to address regional haze that could affect 156 national parks and wilderness areas, including requirements for certain sources to install the best available retrofit technology and for states to demonstrate “reasonable progress” towards meeting the national visibility goal.

The CAA contains a national visibility goal for the “prevention of any future, and the remedying of any existing, impairment of visibility in Class I areas which impairment results from manmade air pollution.” The EPA promulgated comprehensive regulations in 1999 requiring all states to submit plans to address regional haze that could affect 156 national parks and wilderness areas, including requirements for certain sources to install the best available retrofit technology and for states to demonstrate “reasonable progress” towards meeting the national visibility goal.

States are required to revise plans every 10 years.

New Source Review (NSR).

The Clean Air Act imposes permitting requirements when a new source undergoes construction or when an existing source is reconstructed or undergoes a major modification.

These requirements are contained in the CAA’s PSD and Nonattainment New Source Review (NNSR) programs, generally referred to as NSR.

On August 4, 2020, the EPA released a guidance memorandum concerning implementation of plantwide applicability limitations (PALs) (Guidance on Plantwide Applicability Limitation Provisions Under the New Source Review Regulations).

PALs allow sources to make physical and operational changes under a plantwide emission limit without “triggering” NSR.

The EPA has also taken action on a number of different rules and guidance affecting the interpretation and application of NSR.

In a final rule (83 Fed.

15, 2018)), the EPA completed reconsideration of a 2009 petition to clarify when certain actions must be “aggregated” for purposes of determining whether these actions are part of a single project to which NSR applies.

The EPA has additionally published guidance on the definition of “ambient air” (Revised Policy on Exclusions from “Ambient Air,” Dec.

2, 2019) and guidance concerning when multiple air pollution-emitting activities may be considered to be “adjacent” so that they should be considered to be a single source (Interpreting “Adjacent” for New Source Review and Title V Source Determinations in All Industries Other Than Oil and Gas, Nov.

Additional memorandum and applicability determinations have also been made that address other NSR issues and the EPA has also taken steps to review and potentially revise previously issued rules and guidance, including those related to project emissions accounting and fugitive emissions.

PSD rules, guidance and memorandum may affect the construction, reconstruction and modification of sources and the level of pollution control requirements that will be necessary on a case-by-case basis.

Peabody Energy Corporation 2022 Form 10-K

The CAA imposes permitting requirements when a new source undergoes construction or when an existing source is reconstructed or undergoes a major modification.

These requirements are contained in the CAA’s PSD and Nonattainment New Source Review programs, generally referred to as NSR.

The EPA has taken action on a number of different rules and guidance affecting the interpretation and application of NSR.

These rules and guidance may affect the construction, reconstruction and modification of sources and the level of pollution control requirements that will be necessary on a case-by-case basis.

Federal Coal Leasing Moratorium .

10 unchanged sentences

coal mining operations by requiring effluent limitations and treatment standards for wastewater discharge from mines through the National Pollutant Discharge Elimination System (NPDES).

Regular monitoring, reporting and performance standards are requirements of NPDES permits that govern the discharge of water from mine-related point sources into receiving waters.

Regular monitoring, reporting and performance standards are requirements of NPDES permits that govern the discharge of water from mine-related point sources into jurisdictional waters.

Army Corps of Engineers (Corps) regulates certain activities affecting navigable waters and waters of the U.S., including wetlands.

Section 404 of the CWA requires mining companies to obtain permits from the Corps to place material in or mine through jurisdictional waters of the U.S.

Section 404 of the CWA requires mining companies to obtain permits from the Corps to place dredged or fill material in or mine through jurisdictional waters of the U.S.

States are empowered to develop and apply water quality standards.

4 unchanged sentences

State and tribal regulators consider whether the activity will comply with their water quality standards and other applicable requirements in deciding whether or not to certify the activity.

The EPA issued a final rule in 2020 that could limit state and tribal regulators’ authority by allowing the EPA to certify projects over state or tribal regulator objections in some circumstances.

That rule was temporarily vacated by a district court, but a Supreme Court order on April 7, 2022, effectively reinstated the rule.

The EPA issued another proposal in June 2022 that would supersede the 2020 rule and expand state and tribal regulators’ authority to review activities that require federal permits or licenses and to impose conditions they believe are necessary to ensure compliance with water quality requirements.

Comments for this rule were due August 8, 2022 and final rule is expected in early 2023.

CWA Definition of “Waters of the United States” .

In January 2020 the EPA and the Corps finalized the Navigable Waters Protection Rule to revise the definition of “Waters of the United States” and thereby establish the scope of federal regulatory authority under the CWA.

On August 30, 2021, a federal court in Arizona vacated the Navigable Waters Protection Rule, and on September 3, 2021, the EPA and the Corps announced that they had “halted implementation” of the rule nationwide and that they are interpreting “Waters of the United States” consistent with the pre-2015 regulatory framework.

On December 30, 2022, the agencies released the pre-publication version of a final rule that formally repeals the Navigable Waters Protection Rule and codifies a revised definition of “Waters of the United States” that is generally consistent with the pre-2015 regulatory framework that they are currently implementing.

The final rule was published in the Federal Register on January 18, 2023 and takes effect on March 20, 2023.

In addition, the Supreme Court is currently considering Sackett v.

21-454, a case involving the scope of federal regulatory authority over wetlands.

The Court heard oral arguments on October 3, 2022, and the opinion is forthcoming.

Depending on the outcome of that case, the agencies may need to revisit the most recent rulemaking.

Effluent Limitations Guidelines for the Steam Electric Power Generating Industry.

On September 30, 2015, the EPA published a final rule setting new or additional requirements for various wastewater discharges from steam electric power plants.

The rule set zero discharge requirements for some waste streams, as well as new, more stringent limits for arsenic, mercury, selenium and nitrogen applicable to certain other waste streams.

On October 13, 2020, the EPA issued a final rule revising the technology-based effluent limitations guidelines and standards for the steam electric power generating point source category applicable to flue gas desulfurization wastewater and bottom ash transport water.

However, on August 3, 2021, the EPA announced it is undertaking a supplemental rulemaking to “strengthen certain discharge limits” applicable to steam electric power plants.

The EPA expects to issue that proposal in early 2023.

As finalized, the revised effluent limitations guidelines could significantly increase costs for many coal-fired steam electric power plants.

On January 18, 2023, the EPA and the Corps finalized a revised definition of “Waters of the United States” to clarify the scope of federal regulatory authority under the CWA.

Several courts preliminarily enjoined that rule in 27 states.

In addition, on May 25, 2023, the U.S.

Supreme Court issued its decision in Sackett v.

21-454, which significantly narrowed the scope of federal regulatory authority over wetlands and non-navigable waters.

The agencies finalized a rule on September 8, 2023, to conform key aspects of the regulatory definition to the Sackett decision.

Pending litigation over the January 2023 definition has resumed, as the September 2023 final rule did not address many of the claims at issue in those cases.

CWA Water Quality Certification Rule .

The EPA issued a final rule in 2020 that would have limited state and tribal regulators’ certification authority under CWA Section 401 by allowing the EPA to certify projects over state or tribal regulator objections in some circumstances.

On September 27, 2023, the EPA finalized a superseding rule that would expand state and tribal regulators’ authority to review activities that require federal permits or licenses and to impose conditions they believe are necessary to ensure compliance with water quality requirements.

That rule took effect on November 27, 2023.

Peabody Energy Corporation 2023 Form 10-K

Effluent Limitations Guidelines for the Steam Electric Power Generating Industry.

In 2015, the EPA published a final rule setting requirements for wastewater discharge from EGUs.

On March 29, 2023, the EPA proposed a rule that would establish more stringent standards for flue gas desulfurization wastewater, bottom ash transport water and combustion residual leachate.

If the proposed rule, expected in April 2024, is finalized in substantially the same form, the revised effluent limitations guidelines would significantly increase costs for many coal-fueled steam electric power plants.

Concurrently, the EPA issued a direct final rule which extended the deadline through June 2023 for steam electric power plants to commit to the permanent cessation of coal combustion by December 31, 2028 in exchange for less stringent wastewater discharge requirements during the interim.

The direct final rule could influence fuel switching or additional coal generating unit retirements by the end of 2028.

National Environmental Policy Act .

6 unchanged sentences

On April 20, 2022, however, the CEQ published the final Phase 1 rule that partially amended the 2020 rule by restoring key provisions of the pre-2020 NEPA regulations.

The CEQ plans to propose a Phase 2 rule in the near future that makes broader changes to the 2020 rule.

The CEQ proposed a Phase 2 rule on July 31, 2023 that makes broader changes to the 2020 rule, and it expects to finalize those changes in April 2024.

Separately, the CEQ published NEPA Guidance on Consideration of Greenhouse Gas Emissions and Climate Change on January 9, 2023.

The interim guidance was effective immediately, though the agency is accepting comments on the guidance.

The interim guidance was effective immediately, though the agency accepted comments on the guidance and expects to issue final guidance in April 2024.

Resource Conservation and Recovery Act (RCRA) .

3 unchanged sentences

Coal mine wastes, such as overburden and coal cleaning wastes, are not considered hazardous wastes under RCRA.

Subtitle C of RCRA exempted fossil fuel combustion wastes from hazardous waste regulation until the EPA completed a report to Congress and made a determination on whether the wastes should be regulated as hazardous.

On December 19, 2014, the EPA announced the final rule on coal combustion residuals (CCR or coal ash).

As finalized, the rule continues the exemption of CCR from regulation as a hazardous waste, but does impose new requirements at existing CCR surface impoundments and landfills that will need to be implemented over a number of different time-frames in the coming months and years, as well as at new surface impoundments and landfills.

Generally, EPA-imposed requirements will increase the cost of CCR management, but not as much as if the rule had regulated CCR as hazardous.

While coal combustion residuals (CCR or coal ash) are exempted from regulation as hazardous waste, there are various EPA-imposed requirements regarding CCR management.

Proposed Rule for Disposal of CCR from Electric Utilities;

4 unchanged sentences

The comment period for the EPA’s proposal ended on April 20, 2020.

Although EPA had planned to finalize this rule in 2021, the EPA now expects to issue a final rule around July 2023.

Although the EPA had planned to finalize this rule in 2021, the EPA now expects to issue a final rule around March 2026.

Separately, on August 28, 2020 and November 12, 2020, the EPA finalized two sets of amendments to its 2015 CCR rule to partially address the D.C.

1 unchanged sentence

The EPA is still deciding how to further revise the 2015 rule to address the remainder of the court decision.

The EPA expects to finalize additional revisions in August 2023.

The EPA expects to issue two final rules addressing the remainder of that decision in April and October 2024.

Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

2 unchanged sentences

Under CERCLA, joint and several liabilities may be imposed on waste generators, site owners or operators and others, regardless of fault.

Toxic Release Inventory .

Arising out of the passage of the Emergency Planning and Community Right-to-Know Act in 1986 and the Pollution Prevention Act passed in 1990, the EPA’s Toxic Release Inventory program requires companies to report the use, manufacture or processing of listed toxic materials that exceed established thresholds, including chemicals used in equipment maintenance, reclamation, water treatment and ash received for mine placement from power generation customers.

Endangered Species Act (ESA) .

1 unchanged sentence

Changes in listings or requirements under these regulations could have a material adverse effect on Peabody’s costs or its ability to mine some of its properties in accordance with its current mining plans.

During the Trump Administration, the Departments of the Interior and Commerce issued finalized five rules aiming to streamline and update the ESA.

During the Trump Administration, the Departments of the Interior and Commerce finalized five rules aiming to streamline and update the ESA.

But in June 2021, agencies announced their plan to revise, rescind, or reinstate the rules that were finalized (or withdrawn) during the Trump Administration that conflict with the Biden Administration’s objectives.

The agencies plan to begin issuing proposed rules in mid-2023.

The agencies issued proposed rules on June 22, 2023, and they expect to finalize revised rules in April 2024.

Peabody Energy Corporation 2023 Form 10-K

5 unchanged sentences

In addition to ATF regulation, the Department of Homeland Security is expected to finalize an ammonium nitrate security program rule.

On July 30, 2019, the OSMRE officially withdrew its decision to initiate rulemaking related to emissions generated from blasting at coal mining operations.

The decision cited its lack of statutory authority and the sufficiency of the existing regulatory framework.

Federal Report on Climate Change .

On November 29, 2023, the U.S.

Global Change Research Program, a working group comprised of 13 U.S.

governmental departments and agencies, issued the Fourth National Climate Assessment.

The report lists the observed effects of “increasing greenhouse gas concentrations on Earth’s climate” and enumerates the impacts of those observed effects.

The report also discusses the alternatives for reducing the impacts of climate-related risks, including through mitigation and adaptation.

While there are no explicit regulatory actions that flow from the issuance of the report, both the legislative and executive branches of government may rely on its conclusions to shape and justify policies and actions going forward.

A Fifth National Climate Assessment is currently in development with an anticipated publication date in 2023.

Global Change Research Program, a working group comprised of thirteen U.S.

governmental departments and agencies, issued parts of the Fifth National Climate Assessment.

The report addresses “projected vulnerabilities, risks and impacts associated with climate change across the United States and provides examples of response actions in many communities.” While there are no explicit regulatory actions that flow from the issuance of the report, both the legislative and executive branches of government may rely on its conclusions to shape and justify policies and actions going forward.

SEC Climate-Related Disclosures .

4 unchanged sentences

The Company is currently assessing the potential impact of the proposed rules.

The public comment period on the proposed rules has concluded and final rules are expected in 2023.

The public comment period on the proposed rules has concluded and final rules are expected in April 2024.

Inflation Reduction Act of 2022 .

1 unchanged sentence

Among its many provisions are programs that provide grants and other forms of direct and indirect financial assistance for the deployment of zero emission technologies as well as other actions that could affect energy markets and the future use of coal.

The Company is currently assessing the potential environmental impacts of the legislation.

Regulatory Matters — Australia

3 unchanged sentences

Australian state governments also require coal companies to post deposits or give other security against land which is being used for mining, with those deposits being returned or security released after satisfactory reclamation is completed.

Fair Work Act.

In December 2022, the federal government passed The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, which amends the Fair Work Act.

The legislation introduces several changes to workplace laws in Australia including changes to enterprise agreement making and termination, to when industrial action can be taken and to access to multi-employer bargaining.

In addition, employers will no longer be able to employ individuals on a fixed-term contract for more than two years, and access to flexible working arrangements for employees has been expanded.

A number of measures aimed at addressing the gender pay gap have also been introduced.

New South Wales Coal Directions .

The State of New South Wales (NSW) enacted the Energy and Utilities Administration Amendment Act 2022 granting the State Premier and Minister for Energy the ability to issue directions in the event of a coal market price emergency (among other powers).

On December 22, 2022, the State Premier declared a coal market price emergency on the basis that the declaration was necessary to reduce the risk that increases in coal prices could contribute to an increase in electricity prices.

On December 23, 2022, Peabody and a number of other coal producers in NSW were issued with directions that require those coal producers to reserve and sell a portion of the coal produced to NSW power generators at a capped price until June 30, 2024.

On January 31, 2023, amended directions were issued.

The directions, as they currently stand, apply to the Wilpinjong Mine and also impose a number of additional reporting obligations with respect to coal produced from the Wilpinjong Mine.

However, the NSW government is in ongoing discussions with coal producers and power generators regarding issuing additional directions.

It is anticipated that these directions will not impact Wilpinjong Mine, but may require the reservation of coal at the Wambo Mines;

however, the nature and extent of those obligations and associated reporting requirements are still evolving and require further clarification from the NSW government.

Peabody Energy Corporation 2022 Form 10-K

On December 22, 2022, the State Premier declared such an emergency, intended to control coal and electricity pricing.

Subsequently, directions were issued to Peabody Energy Australia Pty Ltd and other coal producers with operations in NSW, which have been amended at various dates.

The most recent directions require Peabody Energy Australia Pty Ltd to reserve a portion of coal produced by Wambo Coal Pty Ltd and Wilpinjong Coal Pty Ltd for sale to NSW power generators at a capped price until June 30, 2024 and impose additional reporting obligations to demonstrate compliance.

While these directions are currently not anticipated to significantly impact the Wambo Mines or the Wilpinjong Mine, the nature and extent of those obligations and associated reporting requirements may continue to evolve if further directions are issued.

Metropolitan Mine Stormwater Discharge .

Over the past two years, there has been significantly high rainfall in New South Wales, including unprecedented rain totals at the Metropolitan Mine site.

While stormwater collected at the mine site is managed through two sedimentation dams, at times the heavy rainfall has presented challenges with managing the significant volumes of stormwater, as the surface water management infrastructure has not had sufficient capacity.

As a result, on multiple occasions throughout 2021 and 2022 stormwater has been discharged from the mine site.

Metropolitan Collieries Pty Ltd (MCPL), a wholly-owned subsidiary of Peabody, removed accumulated material from the sedimentation dams to restore full site stormwater capacity by December 31, 2022 and has identified and is implementing additional controls for the management of sediment moving forward.

Despite the measures undertaken by MCPL to manage and improve the situation, the Environment Protection Authority is currently undertaking an investigation in relation to the discharges of sediment laden water from the mine site and a review process of the Metropolitan Mine’s environmental protection license.

The Environment Protection Authority is investigating potential offenses against the environmental protection legislation arising from the discharges.

Over the past few years, there has been significantly high rainfall in New South Wales, including unprecedented rain totals at the Metropolitan Mine site.

While stormwater collected at the mine site is managed through two sedimentation dams, at times the heavy rainfall presented challenges with managing the significant volumes of stormwater, as the surface water management infrastructure has not had sufficient capacity.

As a result, on multiple occasions throughout 2021 and 2022 stormwater was discharged from the mine site.

Metropolitan Collieries Pty Ltd (MCPL), a wholly-owned subsidiary of PEC, removed accumulated material from the sedimentation dams to restore full site stormwater capacity by December 31, 2022 and identified and is implementing additional controls for the management of sediment moving forward.

Despite the measures undertaken by MCPL to manage and improve the situation, the Environment Protection Authority commenced a prosecution for five breaches of the Protection of the Environment Operations Act 1997 on September 6, 2023.

Peabody Energy Corporation 2023 Form 10-K

Mining Tenements and Environmental .

7 unchanged sentences

Minister for Planning ).

Although the approval was refused for other reasons, the judge in that case discussed ‘Scope 3’ greenhouse gas emissions resulting from the consumption of coal to be mined under the proposed project.

Although the approval was refused for other reasons, the judge in that case discussed ‘Scope 3’ GHG emissions resulting from the consumption of coal to be mined under the proposed project.

Such emissions are often raised as a ground of objection to Australian mining projects, including Peabody’s mining projects.

1 unchanged sentence

Wyong Coal Pty Ltd ), the approval of a coal mining project was confirmed after such emissions had been considered by the relevant authority.

In August 2019, Peabody and Glencore received approval from the NSW Independent Planning Commission (IPC) for the United Wambo project, subject to conditions (Export Conditions) requiring the joint venture to prepare an Export Management Plan setting out protocols for using all reasonable and feasible measures to ensure that any coal extracted from the mine that is to be exported from Australia is only exported to countries that are parties to the Paris Agreement (as defined below) or countries that the NSW Planning Secretary considers to have similar policies for reducing greenhouse gas emissions.

The IPC subsequently approved another non-Peabody coal mining project (Rix’s Creek) without any Export Conditions.

In October 2019, the NSW government introduced into Parliament proposed amendments to legislation and policy that would, if passed, have the effect of invalidating Export Conditions imposed on future NSW planning approvals, as well as no longer requiring consent authorities to consider ‘downstream emissions’ when assessing developments for the purposes of mining, petroleum production or extractive industry.

The NSW government has announced changes to the IPC and planning system process which aims to improve timeframes and efficiencies for project approvals and providing more clarity on the IPC’s role in determining applications including seeking guidance on government policy.

The NSW government has announced changes to the IPC and planning system process which aim to improve timeframes and efficiencies for project approvals and provide more clarity on the IPC’s role in determining applications including seeking guidance on government policy.

In June 2020, the NSW Government released its Strategic Statement on Coal Exploration and Mining in NSW which provides a high level framework for the government's policy approach to the future of the coal sector, as well as details of a streamlined strategic release process.

1 unchanged sentence

In December 2020, the NSW Government finalized and published the Guideline for the Competitive Allocation of Coal, which details the process for considering areas for coal exploration and allocating them by public tender.

Peabody Energy Corporation 2022 Form 10-K

In Queensland, laws and regulations related to mining include, but are not limited to, the Mineral Resources Act 1989, Environmental Protection Act 1994 (EP Act), Environmental Protection Regulation 2008, Planning Act 2016, Coal Mining Safety and Health Act 1999, Minerals and Energy Resources (Common Provisions) Act 2014, Explosives Act 1999, Aboriginal Cultural Heritage Act 2003, Water Act 2000, State Development and Public Works Organisation Act 1971, Queensland Heritage Act 1992, Transport Infrastructure Act 1994, Nature Conservation Act 1992, Vegetation Management Act 1999, Biosecurity Act 2014, Land Act 1994, Regional Planning Interests Act 2014, Fisheries Act 1994 and Forestry Act 1959.

7 unchanged sentences

A guideline has been issued that provides more certainty to the industry on the circumstances in which an EPO may be issued.

Peabody Energy Corporation 2023 Form 10-K

In New South Wales, laws and regulations related to mining include, but are not limited to, the Mining Act 1992, Work Health and Safety (Mines) Act 2013, Coal Mine Subsidence Compensation Act 2017, Environmental Planning and Assessment Act 1979 (EPA Act), Environmental Planning and Assessment Regulations 2000, Protection of the Environment Operations Act 1997, Contaminated Land Management Act 1997, Explosives Act 2003, Water Management Act 2000, Water Act 1912, Radiation Control Act 1990, Biodiversity Conservation Act 2016 (BC Act), Heritage Act 1977, Aboriginal Land Rights Act 1983, Crown Land Management Act 2016, Dangerous Goods (Road and Rail Transport) Act 2008, Fisheries Management Act 1994, Forestry Act 2012, Native Title (New South Wales) Act 1994, Biosecurity Act 2015, Roads Act 1993 and National Parks & Wildlife Act 1974.

13 unchanged sentences

In light of this decision, the Minister for the Environment no longer must consider the effects of carbon emissions when assessing referrals under the Environment Protection and Biodiversity Conservation Act 1999.

However, an application by Sharma for special leave to appeal to the High Court of Australia remains probable, and the duty could be reinstated.

Peabody Energy Corporation 2022 Form 10-K

Sharma did not lodge an application for special leave to the High Court of Australia to appeal this decision and is now out of time to do so.

Mining Rehabilitation (Reclamation).

3 unchanged sentences

Peabody’s mines provide financial assurance to the relevant authorities which is calculated in accordance with current regulatory requirements.

This financial assurance is in the form of cash, surety bonds or bank guarantees which are supported by a combination of cash collateral, deeds of indemnity and guarantee and letters of credit issued under the Company’s credit facility, collateralized letter of credit program and accounts receivable securitization program.

This financial assurance is in the form of cash, surety bonds or bank guarantees which are supported by a combination of cash collateral, deeds of indemnity and guarantee and letters of credit issued under the Company’s collateralized letter of credit program and accounts receivable securitization program.

The Company operates in both the Queensland and New South Wales state jurisdictions.

7 unchanged sentences

The Mining Act 1992 (Mining Act) is administered by the Department of Planning and Environment and the New South Wales Resources Regulator and authorizes the holder of a mining tenement to extract a mineral subject to obtaining consent under the EPA Act and other auxiliary approvals and licenses.

Peabody Energy Corporation 2023 Form 10-K

Through the Mining Act, environmental protection and reclamation are regulated by conditions in all mining leases including requirements for the submission of a mining operations plan (MOP) prior to the commencement of operations.

7 unchanged sentences

The mines submit an annual return reporting on their EA compliance.

In November 2018, the Queensland government passed the Mineral and Energy Resources (Financial Provisioning) Act 2018 providing for a new financial assurance (FA) framework and new progressive rehabilitation requirements.

The new FA framework creates a pooled fund covering most mines and most of the total industry liability, plus other options for providing FA if not part of the pooled fund (for example, allowing insurance bonds or cash).

The percentage rate of the total rehabilitation cost payable into the pooled fund will take into account the financial strength of the holder of the EA for the mine and the project strength of the mine.

The total rehabilitation cost is determined using an updated rehabilitation cost calculator, which no longer provides for discounting.

The commencement date for the new FA framework was April 1, 2019 and there is a transitional period during which Peabody will move each of its mines in Queensland into the new FA framework.

The new progressive rehabilitation requirements commenced on November 1, 2019 and require each mine, within a three-year transitional period, to establish a schedule of rehabilitation milestones covering the life of the mine, and any significant changes to the timing of rehabilitation will require regulatory approval.

In November 2018, the Queensland government passed the Mineral and Energy Resources (Financial Provisioning) Act 2018 which provided for a new financial assurance (FA) framework and new progressive rehabilitation requirements.

The new FA framework created a pooled fund covering most mines and most of the total industry liability, plus other options for providing FA if not part of the pooled fund (for example, allowing insurance bonds or cash).

The percentage rate of the total rehabilitation cost payable into the pooled fund takes into account the financial strength of the holder of the EA for the mine and the project strength of the mine.

The total rehabilitation cost is determined using an updated rehabilitation cost calculator, which does not provide for discounting.

The new progressive rehabilitation requirements, which commenced on November 1, 2019, require each mine to establish a schedule of rehabilitation milestones covering the life of the mine, and any significant changes to the timing of rehabilitation require regulatory approval.

If there is to remain an area within the mine that does not have a post-mining land use (referred to as a non-use management area or NUMA) then each such NUMA will need to pass a public interest evaluation test as part of the approval process.

An example of a NUMA is the void that remains after open-cut mining activities have been completed.

Under the legislation, each current mine is exempt from the requirement to justify its NUMAs to the extent that its current approvals provide for such areas.

The Company is of the view that there will not be a need to seek any further regulatory approvals for any of the NUMAs at any of its Queensland mines.

Peabody Energy Corporation 2022 Form 10-K

Under the legislation, an existing mine was exempt from the requirement to justify its NUMAs to the extent that its existing approvals provided for such areas.

Residual Risks .

10 unchanged sentences

There is also federal and state legislation to prevent damage to Aboriginal cultural heritage and archaeological sites.

Peabody Energy Corporation 2023 Form 10-K

Following the May 2020 destruction of caves at the Juukan Gorge in the Pilbara region of Western Australia by an iron ore mining operation, the federal government established a Senate Inquiry.

10 unchanged sentences

There are some differences in the application and detail of the laws, and mining operators, directors, officers and certain other employees are all subject to the obligations under this legislation.

In September 2020, Safe Work Australia (SWA) published its revised Workplace Exposure Standards (WES) for coal dust and silica based on toxicological information and other monitoring data.

SWA have recommended exposure limits of 1.5 milligrams per cubic meter (mg/m 3 ) for coal dust (to apply from October 2022) and 0.05 mg/m 3 for silica (to apply as soon as possible).

In Queensland, a new workplace exposure standard for respirable crystalline silica (eight hour time-weighted average airborne concentration of 0.05mg/m 3 ) took effect from July 1, 2020.

In New South Wales, the new respirable crystalline silica workplace exposure standard of 0.05 mg/m 3 commenced on July 1, 2020.

The respirable coal dust workplace exposure standard of 2.5 mg/m 3 was reduced to 1.5 mg/m 3 on February 1, 2021 and mines need to report exceedances of the new exposure standard to the NSW Resources Regulator from this date.

NSW is the first mining jurisdiction in Australia to implement an exposure standard for diesel particulate matter with the exposure standard of 0.1 mg/m 3 which became enforceable on February 1, 2021.

In September 2020, Safe Work Australia (SWA) recommended new national Workplace Exposure Standards (WES) of 1.5 milligrams per cubic meter (mg/m 3 ) for coal dust and 0.05 mg/m 3 for silica.

In Queensland, workplace exposure standards for respirable crystalline silica require workplaces to observe an eight hour, time-weighted average airborne concentration of 0.05mg/m 3 .

In New South Wales, a respirable crystalline silica workplace exposure standard of 0.05 mg/m 3 applies;

a respirable coal dust workplace exposure standard of 1.5 mg/m 3 applies and mines must report exceedances of these standards to the NSW Resources Regulator.

Additionally, the NSW government requires an exposure standard for diesel particulate matter of 0.1 mg/m 3 .

In addition, as part of a broader review of workplace exposure standards, SWA is currently considering a proposal to reduce the time weighted average (TWA) WES for CO 2 in Australian coal mines from 12,500 ppm to 5,000 ppm.

2 unchanged sentences

Importantly, a minimum three-year transition period applies for any change to standards.

SWA expects to make recommendations to the Work Health and Safety Ministers on the proposed workplace exposure standards in the first quarter of 2023.

Peabody Energy Corporation 2022 Form 10-K

On July 1, 2020, the Resources Safety and Health Queensland Act 2020 became effective.

6 unchanged sentences

This new law became effective July 1, 2020.

The bill also introduced the requirement for statutory role holders to be employees of the coal mine operator entity with an 18-month transition period ending November 25, 2022.

The bill also introduced the requirement for statutory role holders to be employees of the coal mine operator entity with an 18-month transition period which ended November 25, 2022.

Industrial Relations .

2 unchanged sentences

Most of the hourly workers employed in the Company’s mines are also covered by the Black Coal Mining Industry Award and company specific enterprise agreements approved under the national system.

Peabody Energy Corporation 2023 Form 10-K

In December 2022, the federal government passed The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, which amends the Fair Work Act.

The legislation introduced several changes to workplace laws in Australia including changes to enterprise agreement making and termination;

when industrial action can be taken;

and access to multi-employer bargaining.

In addition, employers will no longer be able to employ individuals on a fixed-term contract for more than two years and access to flexible working arrangements for employees has been expanded.

A number of measures aimed at addressing the gender pay gap have also been introduced.

Following this amendment, the Wambo Underground Mine and four other mines in New South Wales were served with an application for a single interest employer authorization by a union representing certain categories of employees.

If the authorization is granted by the Fair Work Commission, this will initiate the bargaining process for a single enterprise agreement covering all five employers for those specified employee categories.

Peabody is still assessing the potential impacts associated with the application.

In early September 2023, the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 was presented to the Australian Federal Parliament.

The bill proposed amendments to the Fair Work Act 2009 to allow unions and employees to make application to the Fair Work Commission for a ‘ regulated labour hire arrangement order ’ that, if successful, would require employers to provide similar wages and conditions to regulated workers as those provided to permanent employees, unless the Fair Work Commission is satisfied that it is not fair and reasonable to do so.

The bill passed the Australian Federal Parliament on December 7, 2023 and applications for regulated labor hire arrangements can be made beginning in November 2024.

The reforms have the potential to increase labor and compliance costs for coal producers, and Peabody is currently considering mitigation strategies.

National Greenhouse and Energy Reporting Act 2007 (NGER Act) .

7 unchanged sentences

From the start of the 2020-21 compliance year, baselines must use prescribed production variables (an example being run of mine coal) and default emissions intensity values (being values set by the government to represent the industry average emissions intensity of production over five years) unless specific exemptions apply (such as a facility having site-specific values set).

On January 10, 2023, the Australian federal government released its Safeguard Mechanism Reforms Position Paper setting out the proposed changes to the emissions reduction regime.

The reforms will commence on July 1, 2023 utilizing site specific baseline emissions as benchmarks for year-on-year improvement (proposed to be 4.9% each year to 2030) before transitioning to industry average emissions benchmarks by 2030.

In May 2023, the Australian Parliament passed reforms to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015.

The reforms commenced on July 1, 2023 and introduced site specific baseline emissions for heavy emitting facilities as benchmarks for year-on-year improvement (proposed to be 4.9% each year to 2030) before transitioning to industry average emissions benchmarks by 2030.

Proponents will earn tradeable credits (Safeguard Mechanism Credits) when emissions are below their baselines or can purchase credits to offset emissions.

Access to existing Australian Carbon Credit Units will continue unchanged albeit with a price ceiling of $75 Australian dollars per tonne of CO 2 in 2023-24, increasing with the Consumer Price Index plus 2% each year.

After further consultation, the Australian government aims to finalize the legislative amendments to implement the Safeguard Mechanism reforms by April 2023.

On March 27, 2023, the Australian federal government announced several additional emission reduction measures in the Safeguard Mechanism (Crediting) Amendments Bill 2023 which was introduced and passed both Houses of Parliament on March 30, 2023.

The legislation introduced a cap on overall net emissions from facilities covered by the scheme through 2030.

The legislation also set a cap of net zero tonnes carbon dioxide equivalent for any financial year beginning after June 30, 2049.

In addition, if the Minister for Environment and Water grants an approval under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) to a new or expanded facility covered by the scheme, the Minister will be required to give an estimate of the facility's Scope 1 emissions to the Minister for Climate Change, the Climate Change Secretary and the Climate Change Authority for assessment against scheme targets.

The legislation went into effect on July 1, 2023.

The potential impact of these reforms to Peabody’s Australian operations is under review.

Peabody Energy Corporation 2023 Form 10-K

Queensland Royalty .

1 unchanged sentence

The government contributed $30 million Australian dollars towards the Fund, with companies voluntarily contributing $70 million Australian dollars.

Peabody’s contribution to the Fund was approximately $457,000 Australian dollars for the 2021-22 financial year, $522,000 Australian dollars for the 2020-21 financial year and $713,000 Australian dollars for the 2019-20 financial year.

Peabody’s contribution to the Fund was approximately $1.7 million Australian dollars over the three-year period of 2019-2022.

On and from July 1, 2022, the Queensland government introduced three new royalty tiers for coal produced and sold from the state.

4 unchanged sentences

The change follows a three-year freeze on royalty rates for coal in the state.

Through December 31, 2022, the Company paid additional royalties of $69.9 million Australian dollars as a result of the new rates.

The increased rate structure may impact the Company’s future decisions about its Queensland operations.

Peabody Energy Corporation 2022 Form 10-K

New South Wales Royalty .

1 unchanged sentence

This is equal to 6.2% for deep underground mines (coal extracted at depths greater than 400 meters below ground surface), 7.2% for underground mines and 8.2% for open-cut mines.

As part of its 2023-24 state budget the newly elected New South Wales government announced that from July 1, 2024 it would be increasing each of these rates by 2.6% to 8.8% for deep underground mines, 9.8% for underground mines and 10.8% for open-cut mines.

The future impacts of this royalty rate rise on Peabody’s NSW mining operations is being assessed.

Sydney Water Catchment Areas .

19 unchanged sentences

Peabody views technology as vital to advancing global climate change solutions, and the Company supports advanced coal technologies to drive continuous improvement toward the ultimate goal of net-zero emissions from coal.

The board of directors has ultimate oversight for climate-related risk and opportunity assessments, and has delegated certain aspects of these assessments to subject matter committees of the board.

Peabody Energy Corporation 2023 Form 10-K

The Board has ultimate oversight for climate-related risk and opportunity assessments, and has delegated certain aspects of these assessments to subject matter committees of the Board.

In addition, the Board and its committees are provided regular updates on major risks and changes, including climate-related matters.

The senior management team champions the strategic objectives set forth by the Board of Directors and Peabody’s global workforce turns those objectives into meaningful actions.

Management believes that the Company’s external communications, including environmental regulatory filings and public notices, U.S.

Securities and Exchange Commission filings, its annual Environmental, Social and Governance (ESG) Report, its website and various other stakeholder-focused publications provide a comprehensive picture of the Company’s material risks and progress.

All such communications are subject to oversight and review protocols established by Peabody’s board of directors and executive leadership team.

Management believes that the Company’s external communications, including environmental regulatory filings and public notices, SEC filings, its annual Environmental, Social and Governance (ESG) Report, its website and various other stakeholder-focused publications provide a comprehensive picture of the Company’s material risks and progress.

All such communications are subject to oversight and review protocols established by Peabody’s Board and executive leadership team.

The Company faces risks from both the global transition to a net-zero emissions economy and the potential physical impacts of climate change.

Such risks may involve financial, policy, legal, technological, reputational and other impacts as the Company meets various mitigation and adaptation requirements.

Peabody Energy Corporation 2022 Form 10-K

The transition to a net-zero emissions economy is driven by many factors, including, but not limited to, legislative and regulatory rulemaking processes, campaigns undertaken by non-governmental organizations to minimize or eliminate the use of coal as a source of electricity generation, and the ESG-related policies of financial institutions and other private companies.

22 unchanged sentences

Such developments are described below in the section “Regulations Related to Global Climate Change” within this Item 1.

Peabody Energy Corporation 2023 Form 10-K

The enactment of future laws or the passage of regulations regarding emissions from the use of coal by the U.S., some of its states or other countries, or other actions to limit such emissions, could result in electricity generators switching from coal to other fuel sources.

6 unchanged sentences

In addition, CCUS merits targeted deployment incentives, like those provided to other low-emission sources of energy.

Peabody Energy Corporation 2022 Form 10-K

From time to time, the Company’s Board of Directors and management attempt to analyze the potential impact on the Company of as-yet-unadopted, potential laws, regulations and policies.

14 unchanged sentences

RGGI is a mandatory cap-and-trade program to cap regional carbon dioxide emissions from power plants.

Six mid-western states (Illinois, Iowa, Kansas, Michigan, Minnesota and Wisconsin) and one Canadian province have entered into the Midwestern Regional Greenhouse Gas Reduction Accord (MGGRA) to establish voluntary regional greenhouse gas reduction targets and develop a voluntary multi-sector cap-and-trade system to help meet the targets.

It has been reported that, while the MGGRA has not been formally suspended, the participating states are no longer pursuing it.

Seven western states (Arizona, California, Montana, New Mexico, Oregon, Utah and Washington) and four Canadian provinces entered into the Western Climate Initiative (WCI) in 2008 to establish a voluntary regional greenhouse gas reduction goal and develop market-based strategies to achieve emissions reductions.

However, in November 2011, the WCI announced that six states had withdrawn from the WCI, leaving California and four Canadian provinces as the remaining members.

Of those five jurisdictions, only California and Quebec have adopted greenhouse gas cap-and-trade regulations to date and both programs have begun operating.

Many of the states and provinces that left WCI, RGGI and MGGRA, along with many that continue to participate, have joined the new North America 2050 initiative, which seeks to reduce GHG emissions and create economic opportunities in ways not limited to cap-and-trade programs.

California and the Canadian province of Quebec have adopted greenhouse gas cap-and-trade regulations to date and both programs have begun operating.

Several other U.S.

14 unchanged sentences

In December 2012, Australia signed on to the second commitment period.

During the UNFCCC conference in Paris, France in late 2015, an agreement was adopted calling for voluntary emissions reductions contributions after the second commitment period ends in 2020 (the Paris Agreement).

During the UNFCCC conference in Paris, France in late 2015, an agreement was adopted calling for voluntary emissions reduction contributions after the second commitment period ends in 2020 (the Paris Agreement).

The agreement was entered into force on November 4, 2016 after ratification and execution by more than 55 countries, including Australia, that account for at least 55% of global GHG emissions.

3 unchanged sentences

On September 13, 2022, the Australian government passed the Climate Change Act 2022 to set the GHG emissions reduction targets into law.

On January 10, 2023, the Australian federal government released its Safeguard Mechanism Reforms Position Paper setting out the proposed changes to the emissions reduction regime (legislated through the National Greenhouse and Energy Reporting Act 2007 (Cth) ).

Refer to the section “Regulatory Matters — Australia” within this Item 1 for discussion of the proposed reform.

In May 2023, the Australian Parliament passed reforms to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015 (legislated through the National Greenhouse and Energy Reporting Act 2007 (Cth) ).

Refer to the section “Regulatory Matters — Australia” within this Item 1 for discussion of the reforms.

Available Information

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business